When calculating ranges for particular variables, it is mathematically possible to obtain
negative variables; in such an event, one should set zero for that variable range.
The idea behind the Kanban system is to authorize materials for production only if there
is a need for them.
Paced lines use some sort of conveyor to move output along the production line at a
variable rate, so that operators do their work as they need.
According to the service matrix developed by Schmenner, services with low contact
intensity and customization attain profitability through high prices rather than high
volumes.
An expectation of Business Process Design is that the improvements in performance
will be at a minimum incremental.
A renovation activity is any physical entity accompanying a transformation that adds
value.
Six Sigma is better applied on for-profit than in nonprofit organizations.
Water is a good transportation mode for small, high-value, or perishable items.
The mortality curve is also referred to as the fallout rate.
A green belt has a broad knowledge of the six sigma toolkit, but not nearly as much in
the tools as Yellow belts, Black belts and Master Black Belts.
Benchmarking is another name for QFD (Quality Function Deployment).
Favorable variances do not require corrective action or further investigation; only
unfavorable variances in performance.
The amount of flexibility the project manager has in terms of starting and completing
an activity is referred to as its slack.
Some benefits of electronic data interchange include less redundancy, improved
customer service, and better order tracing.
A system is defined as a purposeful collection of people, objects, and procedures for
operating within an environment.
Bottlenecks are places in the production process where production slows down because
of a slow or insufficient number of resources.
Continuous processes typically run 24 hours a day, seven days a week because:
a) There is a need to spread their huge fixed cost over as large a volume as possible
b) Price is often the single most important factor in competing with their products
c) Facilities are a maze of pipes, conveyors, tanks, valves, vats, and bins
d) Both A and B
Enterprise resource planning systems are designed to collect and interpret
customer-based data.
Which of the following costs includes taxes, insurance on buildings, depreciation of
buildings, and maintenance and repairs?
a) Capital costs
b) Risk costs
c) Ordering costs
d) Storage costs
Which of the following characteristics makes it EASIER to measure the quality of a
service, relative to that of a product or facilitating good?
a) Service portions are abstract, rather than concrete
b) Service portions are transient, rather than permanent
c) Service portions are psychological, rather than physical
d) None of the above characteristics make it easier to measure service quality
Of the following, which form of transformation system has the lowest output variety
but the highest batch size?
a) Job shop
b) Cellular
c) Project
d) Flow shop
Any path that if delayed will delay the completion of the entire project is known as a:
a) Significant path
b) Critical path
c) Central path
d) Network path
As control involves both mechanistic and human elements, it is one of the manager’s
most difficult tasks. Which of the following is the best answer about desirable
characteristics of control systems?
a) Should be as simple as possible to operate and maintain
b) Should signal managers if they go out of order
c) Should be focused and admit the least amount of variation
d) Both A and B
Some benefits of the balanced scorecard include:
a) It helps align departmental and personal goals to the organization
b) It is an effective way to clarify and gain authority within the organization
c) It is a mechanism for aligning personal goals with societal goals
d) It helps organizations track their competitors
The following are shortcomings associated with analyzing problems ‘one factor at a
time’ (also known as OFAT and 1FAT) EXCEPT:
a) In real life it is almost impossible to hold all other factors constant
b) Experimental designs specify levels for each factor to be included
c) It is very hard to account for interactions or joint variation between factors
d) Though graphing results is helpful to observe different factors, it is hard to graph
variation of more than two or three variables at the time
Which of the following is NOT one of the seven categories of waste or muda?
a) Waiting
b) Inventory
c) Underproduction
d) Defects
Which of the following is/are (a) primary tenet(s) in the Japanese work systems?
a) Waste is minimized
b) Continually improving process and systems
c) Six sigma implementation
d) Both A and B
Six Sigma (DMAIC) is best applied when:
a) The process is fundamentally flawed
b) The process is brand new
c) There is too much variation in the process
d) There is too much waste in the process
Bartmess and Cerny (1996) identify three elements of a core capability that hinders
imitation; which of the following is NOT one of these elements?
a) It is complex and requires organizational learning over a period of time
b) It is based on multiple functional areas, both internal and external to the organization
c) It is a result of how the functions interact
d) It is based on the skills/knowledge within the functions themselves
The amount of time a project manager estimates it will take to complete the activity
under ideal conditions is known as:
a) Pessimistic time
b) Optimistic time
c) Likeliest time
d) Utopian time
Which of the following is NOT a factor that is increasing the need to better manage the
supply chain?
a) Optimization of their own value by most segments in the supply chain
b) Global competition and outsourcing
c) E-commerce and telecommunications
d) Outsourcing and shorter life cycles
Suppose that you have found the AAIV (aggregate inventory value on average for the
year) to be $400 million. The daily cost of good sold was estimated at $80 million, what
is the estimated days of supply?
a) 5
b) 8
c) 32
d) 48
A popular approach to design experiments, based upon the notion that most of the
quality is determined at the design stage is named after Japanese guru ______
________.